Moses D Pelaelo: The importance of communication in macroeconomic policy management

Speech by Mr Moses D Pelaelo, Governor of the Bank of Botswana, at the Kgori Capital Business Club seminar, Gaborone, 3 October 2017.

Director of Ceremonies

I am pleased and indeed it is an honour to be part of this important information sharing and empowering Seminar, organised by the Kgori Business Press Club. The initiative for this forum resonates with the Bank's desire to contribute to the development of informed financial and economic journalism as a means of improving transmission of market information, as well as incisive commentary on policy analysis and decisions. For a number of reasons, a central bank needs to continually interact and disseminate information to stakeholders. Such interactions and communication clarify the Bank's role and, therefore, reinforces the effectiveness with which it discharges its mandate of ensuring price stability, sound financial and well-functioning payments systems and, more broadly, financial stability.

Director of Ceremonies, the subject of my remarks this morning is 'The Importance of Communication in Macroeconomic Policy Management.' For this purpose, let me distil macroeconomic policy into three distinct elements, namely fiscal policy, monetary policy and exchange rate policy; and for convenience add financial sector policies in order to complete the interactive and inherent relationships involved.